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Response from the Antigua & Barbuda Hotels and Tourism Association (ABHTA) on Accommodation Levy Compliance

During the weekly Cabinet Press Briefing, Chief of Staff Lionel Max Hurst highlighted a presentation made by representatives of the Ministry of Finance regarding the payment of the Accommodation Levy and the under-reporting of hotels. The Antigua & Barbuda Hotels and Tourism Association (ABHTA) acknowledges these concerns and remains committed to ensuring compliance among its members. However, we emphasize the necessity of extending this compliance effort beyond traditional hotels to include the rapidly growing Villa and Guesthouse market, commonly associated with platforms such as Airbnb.

The ABHTA strongly encourages the growth of the Villa and Guesthouse market and recognizes it as a valuable and viable segment that expands the range of accommodation options available to visitors. This growth enhances the destination’s appeal by catering to diverse traveler preferences while complementing the existing hotel sector.

In the last quarter of 2024, the ABHTA actively engaged with key government stakeholders—including the Honourable Charles “Max” Fernandez, Minister of Tourism, Civil Aviation, Transportation, & Investment and the Inland Revenue Department—to highlight the need for standardized taxation across all accommodation providers.

The significant growth in visitor arrivals has been accompanied by a notable shift in guest preferences, with a 14% decline in hotel stays and an 11% increase in stays at Villas and Guesthouses when comparing January–December 2024 (the island’s strongest tourism year) to the same period in 2019 (the second strongest year for stayover arrivals).

As the Government advances its compliance efforts, the ABHTA welcomes an audit of its members but strongly advocates for the extension of this initiative across the entire accommodation sector. A standardized and enforced taxation framework will prevent revenue leakage, ensuring that the Government fully benefits from the sector’s overall growth.

We remain eager to collaborate with all relevant authorities to support a fair and comprehensive approach to taxation, ultimately strengthening the tourism industry and national economy.

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